Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- A 4-year bond, with a face value of $1000, and a coupon rate of 5% (coupon is paid semi-annually), has current yield of 4.76%. Is this bond sold at a discount, or at a premium? Determine the yield to maturity of this bond.arrow_forwardA bond has a $1,000 par value, 12 years to maturity, and pays a coupon of 7.25% per year, semiannually. The bond is callable in seven years at 110% of its par value. If the bond’s yield to maturity is 7.02% per year, what is its yield to call? A) 7.59% B) 7.68% C) 7.84% D) 8.00% E) 7.76%arrow_forwardThe face Value of the 8.5% bond is $1,000 with a maturity period of 5 years. The bond is selling currently at $943:15: The yield-to maturity on the similar bond-is 10%. Calculate Bond Duration and Volatility of the Bondarrow_forward
- A 7.5 percent bond has a yield to maturity of 6.5 percent. The bond matures in seven years, has a face value of $1,000, and pays semiannual interest payments. What is the amount of each coupon payment?arrow_forwardCalculate the yield to maturity on the following bonds: A 9.4 percent coupon (paid semiannually) bond, with a $1,000 face value and 19 years remaining to maturity. The bond is selling at $965. An 8.4 percent coupon (paid quarterly) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $901. An 11.4 percent coupon (paid annually) bond, with a $1,000 face value and 6 years remaining to maturity. The bond is selling at $1,051. (For all requirements, do not round intermediate calculations. Round your percentage answers to 3 decimal places.arrow_forwardA $1000 bond with semi-annual coupons is redeemable at 103 in 5 years. The absolute value of the write down (book value adjustment) in the first coupon is $3.99 and the absolute value of the write down (book value adjustment) in the 5th coupon is $4.85. What is the price of the bond?arrow_forward
- A 15-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 6%. Required: a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $940. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.) b. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,000. (Do not round intermediate calculations. Round your answers to 2 decimal places.) c. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,040. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.)arrow_forwardA 12-year, semiannual coupon bond sells for $951.07. The bond has a par value of $1,000 and a yield to maturity of 6.48 percent. What is the bond's coupon rate?arrow_forwardA 10-year bond with a $1,000 face value has a coupon rate of 8 percentpaid semiannually. If current interest rates are 7 percent for bonds of asimilar nature, calculate the price of the bond.arrow_forward
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